IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/13982.html
   My bibliography  Save this paper

Evaluating the Financial Position and Performance of a typical Dairy Farm in Bulgaria

Author

Listed:
  • Vassilev, Zlatan

Abstract

The aim of this paper is to explore the potentials of typical middle sized dairy farms (with 22 cows) to absorb the quotas and market shares released by the small scale farms after the EU accession in 2007. The hypothesis is that quota introduction combined with high quality standards for raw milk will significantly reduce the share of small scale farms in milk production for processing. If different opportunities for alternative income-generating activities become available for small farms (as a consequence of the EU accession), their willingness to give up dairy farming will increase. Middle sized farms will benefit from an improved access to resources and also from more favourable conditions for economic growth. In this paper the analysis was made on the International Farm Comparison Network (IFCN) concept of typical farm. The Trade Implication and Policy Implication CALculator (TIPICAL) modelling program provides financial statements and most of the calculations for business’ profitability, solvency, liquidity, cost analysis and comparisons. The results of the financial analysis show the poor credit power of farms, when calculated only on farm assets market price. In the same time, it reveals the potential of growing and carries out an economy of scale when both financial and farm management are improved.

Suggested Citation

  • Vassilev, Zlatan, 2007. "Evaluating the Financial Position and Performance of a typical Dairy Farm in Bulgaria," MPRA Paper 13982, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:13982
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/13982/1/MPRA_paper_13982.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Plamen Mishev & Philip Kostov, 2004. "Decision making pattern of subsistence farmers in Bulgaria," Others 0409012, University Library of Munich, Germany.
    2. Philip Kostov & John Lingard, 2004. "Modelling the effects of subsistence on Bulgarian agricultural performance," Computational Economics 0409002, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Philip Kostov & John Lingard, 2004. "Institutional foundations of subsistence agriculture in transition economies," Others 0409010, University Library of Munich, Germany.
    2. Philip Kostov & John Lingard, 2004. "On the nature of Bulgarian subsistence agriculture," Others 0409009, University Library of Munich, Germany.
    3. Plamen Mishev & Philip Kostov, 2004. "Decision making pattern of subsistence farmers in Bulgaria," Others 0409012, University Library of Munich, Germany.
    4. Philip Kostov & John Lingard, 2004. "Block-diagonal representation of a dualistic agricultural economy and its application in formal modelling: the case of Bulgaria," Computational Economics 0409001, University Library of Munich, Germany.
    5. Philip Kostov & John Lingard, 2004. "Rural Development as Risk Management," Others 0409013, University Library of Munich, Germany.
    6. Philip Kostov & John Lingard, 2004. "Transition, agriculture and the vanishing market," Others 0409011, University Library of Munich, Germany.
    7. Philip Kostov & John Lingard, 2004. "Subsistence Agriculture in Transition Economies: Its Roles and Determinants," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 565-579, November.
    8. Philip Kostov, 2004. "Transition, agricultural decommercialisation, and their implications for quantitative modelling," Others 0409008, University Library of Munich, Germany.

    More about this item

    Keywords

    dairy farm structure; financial position; measures of solvency; growth potential;
    All these keywords.

    JEL classification:

    • N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • P32 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:13982. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.